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SFB 564: E4.1 - Quality and food safety issues in markets for high-value products in Thailand and Vietnam
Project
Project code: keine Angaben
Contract period: 01.01.2006
- 01.01.2009
Purpose of research: Basic research
The production and marketing of high-value agricultural commodities – such as fruits, vegetables, and livestock products – has been an important source of cash income for small-scale farmers in the northern mountainous regions of Thailand and Vietnam. However, against the background of recent free trade agreements and market liberalization, there is increasing national and international competition, partly leading to significant price decreases. Given structural disadvantages of farmers in northern Thailand and Vietnam, it will be very difficult for them to achieve and maintain a competitive position in markets for undifferentiated high-value products. Therefore, product differentiation – in terms of health attributes (e.g., low-pesticide residues, free from diseases and pathogens), taste (e.g., indigenous livestock breeds), time (e.g., off-season production), or processing characteristics (e.g., packaging, drying, canning) – could be a promising alternative. Quality and safety attributes play an increasing role in domestic and international food trade. The additional value generated could lead to sustainable income growth in the small farm sector, but this potential will only materialize when appropriate institutional mechanisms help reduce transaction costs and allow a fair distribution of benefits. This subproject seeks to analyze how the production and marketing of high-value agricultural products with quality and safety attributes can contribute to pro-poor development in northern Thailand and Vietnam.
Quality and safety attributes can only generate value when they directly respond to consumer demand. Furthermore, since they are often credence attributes, the product identity has to be preserved from farm to fork. Therefore, the analysis will cover the whole supply chain, from agricultural production to final household consumption. Interview-based surveys of farmers, intermediate agents, and consumers will be carried out in Thailand, and to a limited extent also in Vietnam. The data will be analyzed econometrically with regard to the structure of high-value markets, trends and their determinants, and efficiency and equity implications of different institutional arrangements (e.g., contract agriculture, supermarket procurement). Since in northern Vietnam, the marketing of high-value products is a relatively recent activity, markets for more traditional crops will be analyzed as well, to better understand the linkages between different cash-earning activities in the semi-subsistent farm households. Apart from their direct policy relevance, the results will contribute to the broader research direction of the economics of high-value agricultural markets in developing countries. Moreover, they will generate useful information for other subprojects of the Uplands Program.
Section overview
Subjects
- Market Analysis/Marketing Strategy
- Business administration
- Agricultural Sociology
Collaborative Project
Funding programme
Excutive institution
Institute of Agricultural Sciences in the Tropics (Hans-Ruthenberg-Institute) (490)
